Thursday, 31 July 2014
Last updated 5 hours ago
Dec 11 2012 | 9:10am ET
London's public transit employees are more than doubling the amount of their pension invested with hedge funds.
Transport for London's pension is boosting its alternatives allocation to 25%, from 13% in March. Just a year ago, the scheme, which faces a £1.2 billion shortfall, had just over 10% of its assets in hedge funds.
"Trustees have decided to increase the exposure to alternatives, including hedge funds, to improve the fund's risk-adjusted returns," investment officer Padmesh Shukla said.
The beneficiaries of the move are Arrowgrass Capital Partners, Bridgewater Associates and Och-Ziff Capital Management, Reuters reports. The TfL pension already invests with Bridgewater and is boosting its allocation to the firm, while it is in the final stages of investing with the other two.
The pension also currently invests in Davidson Kempner Partners, Gresham Investment Management and BlueCrest Capital Management, although it recently cut its allocation to the latter.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…